Islamic Finance
Dain Muwathaq
May 9, 2020
Derivatives
Swap Rate
May 12, 2020

A put ratio backspread which involves selling higher strike put options and buying a lower number of lower strike puts (2 to 1 or 3 to 2) in a market where investors expect a sharp price increase combined with rising volatility.

As the name implies, this strategy is used in bullish markets.

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